Eastern Maine Healthcare Systems of Brewer has joined major hospital industry groups in a lawsuit against the federal Department of Health and Human Services over a drug discounting program.
The legal action, filed Nov. 13 in U.S. District Court for the District of Columbia, aims to derail a pending 28 percent reduction in Medicare reimbursements for expensive outpatient medications hospitals purchase at a discount and use to treat patients with cancer, renal failure, heart disease, stroke and other life-threatening conditions.
The Centers for Medicare and Medicaid Services drug-discount program, known as 340B, allows qualified “safety net” hospitals that disproportionately serve low-income, underinsured and other disadvantaged populations to purchase certain drugs from manufacturers at a considerable discount — typically 25 to 50 percent lower than the average sale price. Then Medicare reimburses the hospitals at a higher rate for the medicines. The extra revenue generated is intended to help hospitals expand patient services.
The change, due to take effect Jan. 1, will decrease the reimbursement rate, taking an estimated $1.6 billion bite out of hospital revenues nationwide.
In a fact sheet posted online on Nov. 1, CMS says the impact will be “budget neutral” and offset by a redistribution of funds to help hospitals pay for non-drug items and services. But hospitals say the reduction will cripple their ability to provide high-level patient care.
The County is pleased to feature content from our sister company, Bangor Daily News. To read the rest of “EMHS joins high-profile lawsuit to protect Medicare revenues,” an article by contributing Bangor Daily News staff writerMeg Haskell, please follow this link to the BDN online.
